AMTV/LONDON, Dec 18, The European Bank for Reconstruction and Development (EBRD) is supporting energy security in Romania by lending RON 400 million (€80 million equivalent) to Delgaz Grid SA, an electricity and gas distribution company in the country.
The EBRD’s investment is part of a wider syndicated facility of RON 3 billion (€600 million equivalent) with seven commercial banks, and will finance the modernisation and expansion of Delgaz Grid’s electricity distribution network in north-eastern Romania.
The loan will enable Delgaz Grid to enhance its network with key solutions, such as new underground and overground cabling, new substations that use digitalised approaches and that integrate the latest supervisory control and data acquisition (SCADA) systems, as well as 272,000 smart meters for its customers.
Improvements to the network will further reduce electricity interruptions and losses, improving the reliability of the electricity distribution network in the region. The enhancements will also enable more intermittent renewable energy to be connected to the grid, supporting Romania’s 2030 renewable energy target. As a result of the distribution network’s greater energy efficiency, approximately 13,000 tonnes of CO2 emissions are expected to be avoided annually.
The EBRD’s investment will be used solely for the purposes of expansion and modernisation of Delgaz’s electricity distribution network.
Delgaz Grid SA operates electricity and natural gas distribution networks in the north of Romania, serving more than 3 million households. The company is part of the E.ON Group, one of Europe’s largest energy network and infrastructure operators and a provider of innovative solutions to 50 million customers.
The EBRD is a leading institutional investor in Romania. To date, the Bank has invested more than €10.8 billion in 523 projects in the country, focusing on financing infrastructure, boosting private sector productivity and further developing the financial sector and capital markets.